PSA Says Inflation Has Yet to Reach Its Peak

According to the Philippine Statistics Authority (PSA), oil prices and high food costs have not yet peaked. This comes after inflation hit 6.1% last June 2022, the highest rate since the 2018 rice crisis.

New BSP Governor Felipe Mendalla stated that “Given the size of the global supply shocks and the uncertainty when the Ukraine war will end, it will take more than a few months, many months, before the headline inflation to go down below 4 percent.” he also adds that “Our current runs show that average inflation will remain elevated,”

Dennis Mapa, a National Statistician said in a briefing that increased transport, fuel, food costs, and “sin” items such as alcohol and cigarettes, added the most to June 2022’s inflation rate.

The inflation rate last month hit the 6.1% rate in November 2018.

According to Mapa, the transport inflation of 17.1% is the highest since the local economy was affected by the global financial crisis in August 2008, while the flood and non-alcoholic beverage inflation of 6% was the highest since the shortage supply of pork last 2021.

Mapa also says that PSA personnel on the ground reports that prices “will still move upward”  in the incoming months.

Last month, 9 out of 13 commodity groups in the consumer price index (CPI) basket of goods showed an increase in prices. Price increases were also felt in all 17 regions of the country last month. Mapa said that this phenomenon “It’s not extraordinary, but the impact is wide,”

While the PSA could not accurately indicate of demand and supply were causing the increase in local prices, Mapa identifies that this was from the global prices of oil slowly spilling over, especially on food items.

Source: Inquirer